A must-read for LCL shipments, practical tips for shipping LCL shipments!

In international ocean transportation, ocean LCL is suitable for situations where the quantity of goods is small or the volume is not enough to fill the entire container.

Ocean LCL cargo is usually organized and managed by logistics companies or freight forwarders. The cargo of multiple cargo owners can be properly assembled to fully utilize the container space.

So, what are the differences between LCL and FCL shipping by sea, and what should we pay attention to when shipping?

01The difference between LCL and FCL

Shipping LCL means that goods from different cargo owners are assembled and transported in one container. Ocean LCL can make full use of container capacity and reduce transportation costs for each cargo owner.

Shipping FCL, also known as FCL transportation or FCL transportation. Goods will not be mixed in the same container with other goods from different cargo owners. This method is suitable for large quantities of goods or goods that need to maintain integrity and independence.

02 Features and advantages of LCL

Cost-Effectiveness: For smaller quantities, LCL shipping is often more cost-effective than FCL shipping because the shipping costs are shared among multiple shippers.

Flexibility: LCL shipping allows shippers to ship smaller shipments as needed without waiting for containers to fill.

Save space: By properly assembling goods, you can make full use of the space in the container and minimize space waste.

03 Things to note when shipping LCL

Loading and unloading time: LCL shipping may require additional loading and unloading time due to the need for assembly during packing.

Cargo protection: Cargo may come into contact with other cargo within the container and additional protective measures may be required.

Route restrictions: Some routes and ports may not have LCL services, resulting in limited transportation options.

04Practical tips for shipping LCL

1. Designated shipping companies are generally not accepted

The shipping company only accepts bookings for FCL cargo, but does not directly accept ocean shipping bookings for LCL cargo. Only after the LCL cargo is consolidated through a freight forwarder can the shipping company book space.

Due to the limitations of the supply of goods, general freight forwarders can only book space from a few shipping companies and rarely meet the needs of designated shipping companies. Therefore, try not to accept designated shipping companies when transacting LCL cargo to avoid being unable to meet the requirements when handling consignment.

Almost all LCL cargo is transported through 'centralized consignment and centralized distribution' of freight forwarding companies. The LCL distribution port in East China is basically Shanghai Port.

2. Pay attention to relevant transportation terms

When negotiating a deal with the customer, special attention should be paid to the relevant transportation terms, so as to avoid discovering that the transportation terms cannot be met when the other party's letter of credit is issued and the shipment is handled.

In daily operations, we often encounter that L/C stipulates that LCL cargo transportation does not accept the freight forwarder's bill of lading. Because the shipping company does not directly accept bookings for LCL cargo, the shipping company's ocean bill of lading is issued to the freight forwarder, and the freight forwarder then issues HOUSEB/L to the consignor. If the L/C stipulates that the freight forwarder's B/L is not accepted, then there will be no choice when handling the actual transportation, which will cause L/C inconsistencies.

3. Billing tons should be as accurate as possible

Before delivering LCL goods, the factory should be required to measure the weight and size of the goods as accurately as possible. When the goods are delivered to the warehouse designated by the freight forwarder for storage, the warehouse will generally re-measure the goods and charge based on the re-measured size and weight.

If the factory changes the packaging, the factory should be required to notify it in time. Do not wait until the goods are delivered to the freight forwarder's warehouse and feed the information back through the freight forwarder. Time is often already very tight. If you change the customs declaration documents again, it is easy to delay the customs declaration, or incur expedited customs declaration fees and port charges.

4. Pay attention to the minimum charge standard for goods

In some ports, due to insufficient supply of LCL goods and high costs, freight forwarding companies specializing in LCL adopt the lowest charging standards for goods with smaller volumes.

For example, the minimum calculation is 2 freight tons, that is, if it is less than 2 freight tons, the price will be calculated as 2 freight tons. Therefore, for goods with smaller volume and relatively remote ports, some of these factors should be taken into consideration when transacting, so as to avoid being passive in the future.

5. Confirm the cost before signing the contract

For some routes and ports that are relatively remote, and the customer proposes to deliver LCL goods to inland points, it is best to consult before signing the deal and confirm that there are shipping companies and freight forwarding companies that can handle the delivery and related costs of these remote ports and inland points before signing the contract.

Summarize:

Overall, ocean LCL is a flexible and affordable method of ocean shipping, especially suitable for export shipments of smaller quantities of goods or small businesses.

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